North Carolina Down Payment Assistance Systems

Online Payments - The North Carolina Housing Finance Agency got two amazing plans for First Time Home Buyers. These programs will be the Mortgage Credit Certificate along with the Down Payment Assistance System.

Also you purchase a property between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of these plans, it is also possible to qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a home in the prior three years. That is precisely the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and moderate incomes. All home owners can claim an itemized deduction. The MCC takes this a step further.

It is possible to claim 20% of the interest you pay as a credit on your federal income taxes if you are eligible for the MCC. It is possible to save as much as $2,000 on your taxes.

Should you qualify for 2009, for the MCC, you'll have the ability to combine this. This might reduce the tax liability of a buyer's by $10,000.

Who qualifies for an MCC is based in your income and also the price of the home you're buying. Household income means the “gross income of the mortgagor and any other person expected to reside in the dwelling who's 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing Dwelling $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their down payment and closing costs may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer just has to pay and the load would pay around $8,000 of the remaining balance.

This program has more rigorous income limitations than the MCC plan outlined above. Like the MCC program, it can be used in combination with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, nevertheless, can not be used in combination together with the MCC. This really is an either or scenario.

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Men $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Home $210,000